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Instruction 3-1 Use these tax rates and taxable wage: OASDI—(Employees\' and Emp

ID: 2455270 • Letter: I

Question

Instruction 3-1 Use these tax rates and taxable wage: OASDI—(Employees' and Employers' 6.2%; Self-Employed 12.4%) on first $113,700. HI—(Employees' and Employers' 1.45%; Self-Employed 2.9%) on all taxable wages. Note: Employees' supplemental HI rate of 0.9% on wages in excess of $200,000 is not applicable. Refer to Instruction 3-1. During 20--, Garr was paid a weekly salary of $2,300. The amount of FICA to be withheld from the following payments is: OASDI HI a) For the 50th week __________ __________ b) For the 51st week __________ __________ c) For the 52nd week __________ __________

Explanation / Answer

Answer:a) For the 50th Week:

OASDI=[(2300*50)-113700)*6.2%]=80.6

HI=2300*1.45%=33.35

Total FICA=113.95

b) For the 51st week :

OASDI=[(2300*51)-113700)*6.2%]=223.2

HI=2300*1.45%=33.35

Total FICA=256.55

C) For the 52 th week:

OASDI=[(2300*52)-113700)*6.2%]=365.8

HI=2300*1.45%=33.35

Total FICA=399.15